Asset Allocation

Lexington Avenue Capital Management is committed to helping our clients reach their long-term financial goals while focusing on preserving and growing wealth. A widely diversified portfolio is best able to withstand difficult markets and provide safety to investors consistent with appropriate risk.

What Makes the Biggest Difference

By taking the time to understand in depth the unique financial situation of our clients, we construct customized asset allocations based on a client’s risk tolerance and financial outlook. This approach provides the after tax returns tailored to the client’s needs and is the most cost effective for clients.

Although investors spend most of their time weighing which stock or bond to buy, many academic studies show that as much as 90 percent of the difference in portfolio performance is the result of asset allocation, the division of portfolios among different kinds of assets. Designing a well diversified portfolio with a good mix of bonds, large and small stocks and international exposure is a critical step in a successful investment program. Many portfolios suffer because they are not sufficiently diversified and often are cluttered with a variety of investments accumulated haphazardly over the years. By carefully constructing a portfolio, it is often possible to increase overall returns but still manage to hold risk constant or even reduce risk by diversifying among multiple assets classes. Proper asset allocation takes into account a family’s goals, resources, ages, time horizon and tolerance for risk.